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Wondering if and how we can claim the backyard landscaping that my husband just finished. Our yard was a disaster as the people who used to live here did not take care of the yard. So can we claim the rock, soil and sod that we had to buy? If so, how? I was trying to find the info on the CRA website but couldn't find anything specific to this. The space is regularly used by the daycare kids. We also built a brand new cedar sandbox.
I don't know for sure. I am doing some work this summer in the yard, mostly a small deck off the daycare room, and putting down rubber mulch in one section for all the play structures. I plan on claiming both projects. The deck will probably gave to be claimed differently? Someone else will probably know better, but I think if it improves the value of your home when you sell it, it's not the same as other write offs.
I would claim it with your house renos and upkeep not as a daycare expense. I give my accountant a total of all house renos every year and he claims a portion. Now if it was strictly for daycare use like rubber mulch then I would claim that portion completely under daycare. I always ask myself - if I wasn't running my daycare would I still do this improvement? If I answer yes then it goes under my Reno totals for end of year.
Just bumping up my post due to all the spam this morning...
I think mickyc is right. You can't claim it solely as a daycare expense because it is your private residence and is used after business hours too. I would say it comes under home renos so a portion gets written off. Now anything that is ONLY used for daycare then that is a total right off. The up keep of the garden goes into household supplies...same section is cleaning and paper products. A portion of my fertilizer, gas for lawn mower etc etc gets written off just like hydro and gas. It is a necessary cost for daycare but not just for daycare either.
So I would claim it as an expense under Business use of home if it isn't solely for the daycare? I plan to claim the cost of building the sandbox 100%, but the sod and soil could be claimed under maintenance costs in Business use of home? We do our own taxes, so I want to make sure I have it figured out for next year.Quote:
Originally Posted by bright sparks
yes I think that is right Amanda. Sorry I don't know 100% as that is what my accountant is for LOL.
I built a new sandbox this year as my old one was too small for all the children, I claimed it 100% because though my kids do use it, I would not have put it in if not for my child care.
I agree with mickyc. If it's something ONLY for daycare than it can be claimed 100%. If it's something that benefits both you personally and the daycare than it's claimed for both. I would imagine the percentage is different for all but because my dc is half the house all my other expenses are claimed at 50%. So in my case, the sandbox would be 100% (unless your kids are using it too...than I dont know?) and the sod and soil for the lawn would be 50%.
For the sandbox example - even though my daughter uses it of daycare hours I would still claim it as 100% daycare. The reason being that once she grows out of it I would still keep it because I run a daycare. (on a side note - I hate sandboxes and would never ever have one for daycare lol!!)
I believe if it's something like that mickyc, you have to claim it's depreciation or something like that?
I think all toys bought for your own children but will eventually be daycares are done like that too. I think that's how my accountant explained it. I didn't pay really close attention because I don't have any of that yet.